Highland Company has the following information: Month Budgeted Sales January $70

Question

Highland Company has the following information:

Month                                                    Budgeted Sales

January                                                             $70,000

February                                                             75,000

March                                                                 82,000

April                                                                   89,000

Budgeted Operating Expenses Per Month

Wages                                                               $20,000

Advertising                                                         10,000

Depreciation                                                         5,000

Other expenses                                             3% of sales

All cash expenses are paid as incurred. What are the total operating expenses budgeted for the month of February?

A) $30,000

B) $35,040

C) $37,250

D) $38,200

Explanation / Answer

Total operating expenses budgeted for the month of February=20000+10000+5000+(75000*3%)= $37250 Option C is correct

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